Sillyday Park competes with Splash World by providing a variety of rides. Sillyday sells tickets at $120 per person as a one-day entrance fee. Variable costs are $30 per person, and fixed costs are $585.000 per month. Compute Sillyday Park's contribution margin ratio. Carry your computation to two decimal places. Use the contribution margin ratio approach to determine the sales revenue Sillyday Park needs to break even. Begin by selecting the formula labels and then enter the amounts to compute the contribution margin ratio. (Enter you answer to the nearest percent, X%) Contribution margin ratio
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The contribution margin is the difference between the selling price and the variable cost per person. Contribution margin per person = Selling price per person - Variable cost per person Contribution margin per person = $120 - $30 Contribution margin per person = Show more…
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